Farmers and creditors owed millions after a grain firm went bust might get as little as 1p back from every pound unpaid.

Lawyers have confirmed they have submitted a report on failed Ely-based grain merchant Wellgrain, who went into administration owing £15 million in March.

Legal administrators Grant Thornton UK LLP confirmed that their dealings with the merchant, who owe money to Cambridgeshire farmers and creditors, are still ungoing.

Meanwhile, the National Farmers' Union (NFU) has appointed legal panel Tees law to provide advice to those affected.

The report envisages that a dividend of between one and six pence in the pound will be paid to unsecured creditors.

Grant Thornton lawyer Matthew Richards said: "We are still realising assets for the creditors who are still involved in the debt collection and the last remaining stock matters. Once we have the money it gets paid out in proportion, in accordance with the Insolvency Act.

Read More

"We still need to finalise debt collection. We are in dispute with certain debts and these are subject to a legal process."

Wellgrain owes RBS Invoice Finance £10m and creditors £5m

Administrations can last to up to 12 months.

Founded in 2003, Wellgrain once turned over £90 million. Now, it owes RBS Invoice Finance £10m and creditors £5m. According to the report, the bank is going to have a deficit in access of £4m.

Following its collapse, around 160 farmers have contacted the NFU helpline, with the majority of those businesses in East Anglia.

NFU regional director Robert Sheasby said: “We are continuing to offer help and support to members affected by this, in addition to independent professional advice funded through the NFU Legal Assistance Scheme.

"We are also keeping in close contact with the administrators, Grant Thornton.

Read More

“We now know that Wellgrain cannot be rescued, so the question is how much money will be left to pay creditors once all its assets have been sold.

“This remains a worrying time for all of our members who are owed money."

Ely farmer Luke Palmer, who farms 3,000 acres in Stretham, is chairman of the National Farmers' Union (NFU) Ely and Soham branch. He is owed money by Wellgrain for two loads of wheat delivered in February.

It could be months before any payouts are settled

“I know who has been affected, but the biggest problem is they don’t want to say [publicly], they have rung the NFU to tell what they are owed.

“Personally we are owed quite a few thousand. It’s been quite distressing to a lot of members, but other people have been affected far worse than us I believe."